Rivian Automotive is laying off 6% of its workforce in an effort to cut costs as the EV maker, already grappling with falling cash reserves and a weak economy, braces for an industry-wide price war.
The company is focusing resources on ramping up vehicle production and reaching profitability, Chief Executive R.J. Scaringe said in an email to employees on Wednesday announcing the job cuts. Reuters obtained a copy of the email.
Layoffs at Rivian come amid falling EV prices kicked off by cuts made recently by Elon Musk-led Tesla 7 Ford.
The price cuts by Tesla and Ford are expected to hurt EV upstarts such as Rivian, Lucid Group, and British startup Arrival, which Monday said it would lay off half its staff.